Mortgage Servicing Rights Analysis
Accurate MSR valuation and strategic analysis for credit unions retaining mortgage servicing rights.
QuantyPhi's advanced MSR valuation model calculates the value of a credit union's mortgage loan servicing income on sold loans, while retaining the servicing rights as a revenue stream.
- Sophisticated process to determine forecasted prepayment speeds, combining expert market consensus on large pools of outstanding mortgages with excellent geographic dispersion. Projections based on pools of 33 million individual mortgages with a current amount of over $4.7 trillion.
- Prepay projections segregated by loan term (10-, 15-, 20-, and 30-years), loan origination year, and loan interest rate to determine the best prepayment rate for each individual loan based on the loan's specific characteristics.
- A dynamic discount rate is used that combines the loan spread at origination date and the current yield curve.
QuantyPhi has applied this MSR valuation framework in real-world credit union case studies, helping institutions document the fair value of their servicing portfolios for accounting, strategic planning, and examiner discussions.
How Will QuantyPhi Help Your Credit Union?
- Advanced MSR valuation calibrated to credit union mortgage portfolios and current market conditions.
- Loan-level prepayment modeling using pools of 33 million mortgages with broad geographic dispersion.
- Documented methodology and reporting suitable for accounting, ALCO, board, and examiner audiences.
Need More Information?
Discover how QuantyPhi can empower your credit union.